What the Real Estate Industry Can Learn from Long Island Divided?
1. The Real Estate School
Section2:
What the Real Estate
IndustryCan Learn from
âLong Island Dividedâ
Risk Management inTodayâs Real Estate Business
3.5 Hours of Continuing Education
2. Want a copy of
todayâs
presentation?
EmailTracy Matroni and request the link
tmatroni@LCARonline.com
5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 2
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ForStarters...
Write your name on a piece of
paper or on the back of your
business card . . . . . . now use your other
hand to write your name
4. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 4
How did you feel?
Right-handed Left-handed
5. What is âLong
Island
Divided?â
Undercover fair housing investigation from
April 2016 to August 2017 by
ï 25 trained, undercover testers
ï 93 real estate agents tested
ï 240 hours of meetings secretly recorded
ï 5,763 house listings analyzed
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NationallyRecognizedExpertsinFairHousing
âą Co-founded the Fair
Housing Justice Center in
2004
âą Led a national testing
program for the Civil
Rights Division of the
United States
Department of Justice
âą Coordinated more than
12,000 fair housing tests
Fred Freiberg Robert Schwemm
âą Professor of Law at the
University of Kentucky
College of Law
âą Author of âHousing
Discrimination: Law and
Litigationâ
7. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 7
ResultsofInvestigation
ï Clear evidence of widespread separate and unequal
treatment of minority potential homebuyers and
minority communities
ï The house hunting process revealed substantial
instances of steering and discrimination
ï Long Islandâs dominant residential brokerage firms
helped to solidify racial separations
8. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 8
NewsdayâsMinorityTesters
Martine Hackett
Professor
Kelvin Tune
Federal Contractor
Jesus Rivera
Student
Ashley Creary
Actor
Johnnie Mae Alston
Retired State Worker
Lenora Smith
Nurse
Liza Colpa
Yoga instructor
Alex Chao
Actor
Eugene Cha
Actor
Nana Ponceleon
Actor
Niguel Williams-Easter
Actor
Payal Mehta
Actor
Pedro Jimenez
Programmer
Ryan Sett
Actor
Sarai Korpacz
Compliance Specialist
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NewsdayâsWhiteTesters
Cindy Parry
Attorney
Kimberly Larkin
Battista
Teacher
Brittany Silver
Actor
Steven Makropoulos
Actor
Gabriel Kennedy
Actor
Gretchen Olson Kopp
Consultant
Lizzy Lee
Actor
Richard Helling
Administrator
Anthony Congiano
Actor
Larry Samuels
Business Manager
10. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 10
PairedTesting
ï Endorsed by federal and state courts, paired testing is recognized as the
sole viable method for detecting violations of fair housing laws by agents
ï Example:
ï Two testers separately solicit an agentâs
assistance in buying houses â one tester
is white and one is a minority
ï Present similar financial profiles
ï Request identical terms for houses
in the same areas
ï Agentâs actions are then reviewed
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As permitted by law, all tests were
recorded on hidden cameras to ensure
accuracy in describing interactions
between agents and customers *
NOTE: It is illegal in the State of Pennsylvania to
record audio of an individual without their consent
*
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ResultsoftheInvestigation
40% of the tests subjected minority testers to disparate treatment when
compared with white testers
ï 49% of Black testers experienced disparate treatment
ï 39% of Hispanic testers experienced disparate treatment
ï 19% of Asian testers experienced disparate treatment
So what happened and what can we learn?
13. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 13
TheReport
ï Watch it on
https://youtu.be/wqN-D3f49fE
ï Read it on
https://projects.newsday.com/
long-island/real-estate-
agents-investigation/
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SteeringinTodayâsRealEstateMarket
ï Blatant racial steering by real estate agents has largely receded from view
since the civil rights revolution
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SteeringinTodayâsRealEstateMarket
ï In the absence of treatment thatâs more overt, individual home seekers
will never have potentially any reason to suspect discrimination
17. Schools as the
Center of
Attention
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FindingsAboutSchoolsDuringInvestigation
ï In 86 paired tests (35%), many agents highlighted a schools perceived
quality when recommending -or- not recommending locations
19. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 19
FindingsAboutSchoolsDuringInvestigation
ï Many agents gave opinions regarding schools
to some testers but not others
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TheBlackExperience
An agent suggests five Plainview homes to a
white house hunter â but tells a black home
buyer that houses with the same market value in
that location are out of his price range
TEST
67
An agent takes a white customer on house
tours without requesting identification â but
asks a black house hunter to show ID
TEST
76
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TheBlackExperience
An agent warns a white home buyer about gang
violence in Brentwood â but directs the black
house hunter toward the predominantly minority
community without mentioning this
TEST
96
An agent warns a white customer to avoid
investing in Freeport â but suggests the
predominantly minority village could be a good
choice for a black customer
TEST
45
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TheHispanicExperience
An agent complains to a white house hunter
that fair housing laws bar him from warning
buyers away from certain communities, offers
the customer choices in predominantly white
areas and directs a Hispanic house hunter to
predominantly minority communities.
TEST
42
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TheHispanicExperience
An agent tells a Hispanic house hunter that he helps customers
only after they sign an exclusive brokerâs agreement and secure
mortgage preapprovals. The agent provides listings and tours to a
white house hunter without requiring either document.
TEST
78
An agent tells a white customer that he âmight be more
comfortable in a certain demographic area,â says she is barred
from talking about demographics â but adds her colleague will
educate the customer, whom she describes as a âstand-up guy.â
TEST
87
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TheAsianExperience
A white tester was warned that there are âa lot
of Asian people in Great Neckâ while making no
reference of the makeup of the ethnicity or race
of the location to an Asian tester
TEST
11
An agent directs a white tester away from
Huntington calling it a âmixed neighborhoodâ
and a âmini, mini United Nationsâ but does
not mention it to an Asian tester
TEST
32
27. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 27
Aretheschoolsinthisneighborhoodgood?
âSchool information changes year to year,
so itâs best to go straight to the source. You
can find plenty of information online or by
speaking with an administrator at the
school youâre considering.â
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Aretheschoolsinthisneighborhoodgood?
(www.Niche.com) (www.GreatSchools.org) (www.NARRPR.com)
Restricted to NAR Members
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Whatiscrimelikeinthisarea?
âThere is plenty of information online
about crime data and trends in different
ZIP codes. As a real estate professional, I
know that statistics donât always tell the
whole story and that neighborhoods can
vary widely, even within the same ZIP
code. I donât see it as my role to make
determinations about public safety.â
30. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 30
Whatiscrimelikeinthisarea?
(www.SpotCrime.com) (www.AreaVibes.com)
31. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 31
Idonâtwantaneighborhoodwithabunchofchildrenrunning
around. Canyouhelpmefindaplacewithnokids?
âOur MLS doesnât identify neighborhoods
based on the number of children, so I donât
have that data to share with you. If youâre
looking for a neighborhood with other
retirees, I can show you a home in a 55+
active adult community.â
32. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 32
Wewonâtsellourhousetothosetypeofpeople?
âAs a real estate professional, itâs my job to
help you find the right buyer for your
home. That means finding someone who is
financially qualified to see the transaction
all the way to the closing table and getting
you the best price and terms I can for your
home. All citizens of the United States are
bound by fair housing laws that prohibit
discrimination in the sale or rental of
housing.â
33. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 33
TipsforWorkingWithBuyers
âą Pre-qualification / initial meeting
âą Choosing property to show
âą Providing demographic data
(www.Census.gov)
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TipsforWorkingWithSellers
âą Listing property
âą Choosing the buyer
âą Love letters
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WheninDoubt...
. . . always seek the
advice of your broker
or manager
38. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 38
FairHousingTraining
âą Required 2 hours of Fair Housing training every
3 years beginning in 2025
âą Condition of membership
39. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 39
FairHousingTraining
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âPeople generally see
what they look for, and
hear what they listen for.â
Harper Lee
Author of
To Kill a Mockingbird
41. 5/23/2023 The Real Estate School of the Lancaster County Association of REALTORSÂź 41
SOURCES
Brambila, AndreaV. âNARVotes to Require Fair HousingTraining for 1.5M Realtors.â Inman, 11 May 2023,
www.inman.com/2023/05/12/nar-votes-to-require-fair-housing-training-for-all-1-5m-realtors/.
Choi, Ann, et al. âUndercover Investigation Reveals Evidence of UnequalTreatment by Real Estate Agents.â Edited
by Arthur Browne, Newsday, 18 Aug. 2021, https://projects.newsday.com/long-island/real-estate-agents-
investigation/#open-paywall-message.
Murdock, Christy. âAvoid Fair HousingViolations: How to Respond to Sticky FAQs.â Inman.com, Inman News, 23
Feb. 2022, https://www.inman.com/2022/02/23/avoid-fair-housing-violations-how-to-respond-to-sticky-faqs/.